Investing Strategies

A strategy is how to find stocks (usually via screens, also known as searches), analyze the stocks, buy them and sell them. This section concentrates on screening for stocks.

I prefer value stocks (i.e., based on fundamentals). However, fundamentals are secondary for some strategies such as momentum. This book uses the same techniques in Finding Stocks and Scoring Stocks, so they will not be repeated here.

This book describes some simpler strategies and leaves the complicated ones in their own books that follow.

I read the book "What Works on Wall Street" by James O'Shaughnessy blaming many other strategies for non-performance. Later I read another book mentioning that O'Shaughnessy did not work after he published his book.
As mentioned previously, the strategy will not be effective when there are too many followers. That's the reason I provide you with many strategies and you should explore newer strategies yourself. The market favors different groups of strategies in different stages of the market cycle.
The best way to check what is the favorable strategy is to test the performances of your different strategies for the last three to six months. Several low-cost subscription services provide historical databases to make this task simple and feasible.

Traders and hedge fund managers change their strategies frequently. Retail investors should do the same.

One strategy was the poster boy for a subscription service. It worked well before. I tested it recently and it was one of the worst strategies. The lesson is: There are no evergreen strategies. Test out whether they still work in the last 90 days.

This book is divided into 2 books plus the Bonus. I started with the Simple Techniques and then the Basic Investing Strategies. More advanced strategies are described in separate books that are all included in this book.

Last update: 04/2022.
Size: 205 pages (6*9).